Jones Inc. is preparing an aggregate production plan for next year. The company expects demand to be 1,400 units in quarter 1; 2,400 units in quarter 2; 4,400 units in quarter 3; and 3,400 units in quarter 4. The company will have 200 units in inventory at the beginning of the year and desires to maintain at least that number at the end of each quarter as safety stock. Assume hiring and layoff/firing, if necessary, occur at the beginning of the quarter. Other information:

Jones Inc. is preparing an aggregate production plan for next year. The company expects demand to be 1,400 units in quarter 1; 2,400 units in quarter 2; 4,400 units in quarter 3; and 3,400 units in quarter 4. The company will have 200 units in inventory at the beginning of the year and desires to maintain at least that number at the end of each quarter as safety stock. Assume hiring and layoff/firing, if necessary, occur at the beginning of the quarter. Other information: Regular production labor cost = $140 per unit Overtime production cost per unit = $210 Inventory carrying cost = $10/unit/quarter based on quarter-ending inventory Hiring cost = $4,000 per worker Firing/layoff cost = $4,500 per worker Beginning number of workers = 15 pictureClick here for the Excel Data File Each worker can produce 100 units per quarter. a-1. Given the planning information, develop a level production plan and a chase production plan. (Leave no cells blank - be certain to enter "0" wherever required.) Level production plan Quarter Demand Regular Production Overtime/Subcontract Production Ending Inventory Workers Required Hire Fire layoff 1 2 3 1,400 2,400 4,400 3,400 11,600 4 Total a-2. What is the total cost of a level plan? Total cost b-1. Given the planning information, develop a chase production plan utilizing hiring and firing. (Leave no cells blank - be certain to enter "O" wherever required.) Overtime/Subcontract Production Chase Plan - Variable Workforce Quarter Demand Regular Production 1 1,400 2 2.400 Ending Inventory Workers Required Hire Fire layoff 3 4.400 4 3.400 11,600 Total b-2. What is the total cost of a chase plan utilizing hiring and firing? Total cost c-1. Suppose Jones' management is reluctant to constantly change the workforce by hiring and firing. The company decides to hire seven additional workers at the beginning of the year. The company will build inventory in low-demand months and use it in high- demand months. In addition, if necessary, overtime will be used to meet demand requirements if there is not sufficient inventory available. (Leave no cells blank - be certain to enter "0" wherever required.) Quarter Demand Workers Regular Production Overtime/Subcontract Production Ending Inventory Hire Fire layoff Required 1 2 3 1,400 2,400 4,400 3,400 11,600 4 Total